Change in the retail landscape is nothing new—retailers worldwide have always had to adapt to shifts in customer behavior and competitive threats. What is new is the frequency and scope of change, and how fundamentally these shifts can disrupt established retailers. Regardless of region, retailers who no longer offer a strong value proposition for their customers will lose. Yet retailers that pursue new opportunities and capitalize on these shifts can win and position themselves to grow.

Retailers today can capture a wealth of data—including detailed customer transaction histories—but most don’t have the analytics capabilities required to make the most of that information. Success requires sifting through data to discern what the numbers really mean, and then translating that understanding into tangible actions that improve the company’s financial and operational performance.

Across all retail segments—from grocery to fashion—promotions are one of the most effective tools for driving traffic and improving margins. BCG’s holistic approach uses rigorous analytics to give a more granular picture of the performance of past events and then applies those insights to create more effective promotions for the future.

Tom Lutz

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